VEVEY, SWITZERLAND — Nestle S.A. has agreed to buy out minority shareholders of Osem Investments Ltd., Israel’s largest publicly-traded food company, for approximately $840 million. Under terms of the transaction, Nestle would acquire the 36.3% stake in Osem that it doesn’t already own. Nestle has invested in Osem for more than 20 years and already owns 63.7% of the company.
The transaction would mark Nestle’s largest acquisition in the food industry since 2012, when the company acquired Pfizer Inc.’s infant-nutrition unit for $11.9 billion.
“Nestle has a long history of investment in Osem, dating back to 1995, and looks forward to continue to partner with the Osem management to develop the company,” Nestle said.
Established in 1942, Osem produces and distributes a range of branded food products, including Fiber 1 and Nesquik cereals, Bamba and Popco snacks and Nestea.
Osem said its board will consider the transaction at a shareholders meeting scheduled for March 17. Following the transaction, Nestle said Osem shares would be delisted from the Tel Aviv Stock Exchange.
